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Financial Contagion





CAUSES

There are many contentions as to the cause(s) of financial contagion; critics claim that it is the result of a form of Economic Imperialism . However, others point out that the global economic system results in a series of Interdependencies which make contagion inevitable during a particular country's financial troubles.


EXAMPLES

One particular example of this can be seen during the Asian Financial Crisis of the late 1990's. A more recent crisis where disruptions quickly spread into other areas of financial markets is the Subprime Mortgage Financial Crisis in August 2007.


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